Specialist
Former Senior Executive at Amerisourcebergen Corp
Agenda
- Generic pricing impact on AmerisourceBergen (NYSE: ABC) profit margins
- Opioid litigation lawsuit
- Walgreen’s acquisition potential
- Outlook for 2019 and beyond
Questions
1.
Can you outline key trends in the pharmaceutical supply and distribution sector, highlighting those that pertain to AmerisourceBergen [ABC] in particular?
2.
How does the generic pricing context impact ABC’s profit margins and other competing players?
3.
Can we explore the estimated impact of costs stemming from US opioid litigation lawsuits?
4.
How do you envisage these opioid lawsuit costs impacting the Walgreens-ABC dynamic, specifically the desire to purchase ABC?
5.
Which other factors would you pinpoint as potentially inhibiting or further delaying a Walgreens full-scale acquisition of ABC? What are your assumptions regarding a valuation range?
6.
How might reimbursement pressures across the board be impacting the independent pharmacy channel for wholesalers?
7.
How long do you think it will take to resolve the uncertainty around ABC’s Pharmedium component? What is your expected timeline for reopening the Memphis facility?
8.
Have other pharma distribution players been entering the manufacturing component, or has this purely been an ABC strategy?
9.
Do you think Walgreens will wait for a Pharmedium divestiture before taking ABC on? What are your estimations around a potential valuation for Pharmedium?
10.
What is your assessment of ABC’s management, drawing upon their strategy, operational efficiency and optimisation?
11.
What are your thoughts around Amazon further entering the distributor landscape? Who would it potentially be disrupting?
12.
Can we compare ABC’s margins with those of competitors such as Cardinal and McKesson? What is your outlook here?
13.
Which of ABC’s channels would you pinpoint as potential growth opportunities? Would it mostly be the MWI Animal Health and World Courier segments, or elsewhere?
14.
In which additional channels do you envisage ABC prioritising growth? How do you expect the company to split that up, and how much leverage do you think it will have in winning new customers and contracts?
15.
You mentioned a key component for ABC is carving out the speciality drugs from the RFPs [requests for proposal]. How would you grade the company’s ability to do that, and how do you envisage it splitting up and breaking down that process between branded and generic?
16.
Which other potential buyers and scenarios may be available to ABC if the Walgreens acquisition does not come to fruition?
17.
What kind of an acquisition strategy could you potentially foresee ABC pursuing?
18.
To what extent would you say the HD Smith acquisition and integration has helped ABC with growth in speciality?
19.
Could you share your outlook for ABC, alongside any aspects of the company which we did not get a chance to cover today?
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